January 11, 2020

Solar Panel Tax Credits In 2020: Here's What You Need to Know

Tax Credit

Table of Contents:

Is your heating bill out of this world? Are you tired of paying ridiculous electric bills? You might want to look into installing energy-efficient solar panels. Solar power is cheap, clean, and completely renewable. Panels soak up the sun's energy and can heat your home or office. They can also heat water and minimize your electric bill. Some homeowners have so much surplus solar energy that they can feed electricity back into the grid and pay you in the form of a credit on your energy bill. What a turnaround! Thanks to federal and state solar panel tax credits in 2020, you can get more than 26% of your money back when you install new solar panels. We'll take you through everything you need to know about solar panel tax credits in 2020.

Benefits of Solar Power

One of the most encouraging benefits of installing solar power is that your home value will increase. Experts estimate that your home will increase in value by an average of $15,000 in the more solar friendly states. Solar power can be the first step to going completely independent from your utility company. All of our systems are currently grid tied simply because the economics of batteries do not make any sense. However, once the price of batteries come down then you could easily transition to going off the grid. If you have a business, you're losing customers with every minute of a blackout. Restaurants could lose thousands of dollars in produce and meat during an extended power outage. Why risk such a big loss? Solar power can run backup generators and keep your business in business during a crisis. Once you've decided to get solar power, we will come to do a "solar analysis" on your property. We will look over your power bills and evaluate your roof. We're looking for a clear spot that is not in the shade. Solar power won't work on everyone's property, but we can help make that decision.

Solar Panel Tax Credits in 2020

We all know that solar energy is great for the environment. There's no waste and newer solar panels are efficient and affordable. The great news about switching to solar power is that the federal government has authorized solar tax rebates of 26% through the end of 2020. In 2021, the solar tax rebate amount will be reduced to 22%, which is still a great incentive to go solar. In 2022, the deduction rate will be 10%. Taking the time to invest in a solar installation now could save you thousands of dollars. If you're concerned about the cost of installation, you should know that we do offer financing. We're committed to bringing solar power to Northwest Arkansas, Southwest Missouri, and Kansas City, Missouri. You could be eligible for a secured or unsecured solar loan. More than 25 states also offer PACE, or Property Assessed Clean Energy programs, for commercial properties. There are also three states -- Missouri, California, and Florida -- that offer their own programs to homeowners who would like to go solar. They use your property as collateral and offer a 3% interest rate to program participants. If you're thinking of going through a PACE program to get your solar installation, you should know that the financing they provide is tax-deductible. When it's time to claim your deduction, you're going to need IRS form 5965. You will need to complete the worksheet and then place your deduction amount on line 53 of your 1040 tax form.

Long-Term Benefits of Solar Power

Most solar power installations have a warranty of 25 years. Over the life of your solar panels, you have the potential to save $50,000 or more. You'll start saving right away and you should notice your electric bill shrinking within the first month. Another benefit of solar power is that your rates will never go up. Electric companies love to charge more per kilowatt, but they don't always warn their customers about a price increase. Nobody owns the sun, so nobody can charge you for accessing that energy. As we discussed, your home's value will certainly rise. If you have a vacation home, you may still be able to get the solar panel tax credits in 2020. You may have to prove how much time you spend at your vacation residence, and you may be eligible for a pro-rated deduction amount. When you install solar panels, you're removing pollution from the world. A standard five-kilowatt system saves five metric tons of pollution from going into the atmosphere every year. In general, reducing your carbon footprint is a great feeling. Knowing that you are directly contributing to reducing pollution and waste is a point of pride. Young home buyers have so many options now that it's important to make your home stand out in a crowd. Offering energy-rated appliances and solar power could push your home to the front of the line. The average electric bill for an American home is $200 or more. What could you do with that additional money every month? You could do other home repairs, travel, or invest.

How Can I Get Started?

The first step is to schedule a solar analysis for your home or business. We won't sell you a system unless it makes sense for your property. Some homes, unfortunately, just have too much shade for a solar panel installation. We have a strong code of ethics when it comes to our customers. We will always leave your home clean after a solar panel installation and our technicians always undergo a background check and a drug test before being hired. We won't sell you a system you don't need. If you're considering using your solar panel tax credits in 2020, the project needs to be finished by the end of the year. We are flexible with our installation schedules and will work with you to complete our project on time and on budget. Take a minute and send us an email with a good time to reach you. We are committed to providing affordable, renewable energy for Arkansas and Southwest Missouri. We're looking forward to working with you!

Is solar a good fit for your home?

Find out now!

If you are considering going solar, the first step is to get a solar savings report to determine if solar is right for you and your home. Click the button below to get your solar savings report now!

Get Your Solar Savings Report Now!
Nick Gorden

Nick Gorden is the Co-founder and CEO of Shine Solar. Nick’s energy, enthusiasm, and leadership is contagious and has contributed to attracting a talented and successful executive team. His time is focused on strategic growth, maintaining profitability and creating the optimal customer experience. Nick has started, managed and sold companies within the communications, mortgage lending, insurance and real estate industries resulting in tens of millions of dollars of market value to investors.

Join Our Newsletter

Stay up to date on all of the latest news from Shine Solar

Thank you! Your submission has been received!

Oops! Something went wrong while submitting the form

Related Posts